Jury hands NBU a win against LCRA

By Zeke MacCormack :
July 22, 2014

NEW BRAUNFELS - A jury here returned a $27.6 million verdict against the Lower Colorado River Authority on Tuesday, finding the agency had violated its electricity supply contract with New Braunfels Utilities.

NBU Chief Executive Officer Paula DiFonzo hugged her attorneys and teared up after state Court Judge Dib Waldrip read aloud the 10-2 decision by jurors to cap the trial that began June 18.

“I'm just glad it's over,” said DiFonzo.

However, LCRA officials later indicated they were considering an appeal of the jury's finding that it had violated the terms of a 1999 wholesale power agreement with NBU and also overcharged the city-owned utility.

“We are very disappointed in the local jury's decision,” said an LCRA statement. “This is the first round of what we believe will be a long process to protect our customers' interests.”

NBU, which in 2012 filed suit and cancelled its LCRA contract that was due to expire in 2016, accused its long-time partner of discriminating against it by giving more favorable treatment to utilities that had agreed to extend their contracts through 2041.

LCRA countersued, accusing NBU of wrongfully terminating its contract, but jurors found no merit in those claims.

Waldrip said a final judgment in the case would be entered at a future court date that has not been set.